A cost that would be included in product costs under both absorption costing and variable costing is:

A) supervisory salaries.
B) factory rent.
C) variable manufacturing costs.
D) variable selling expenses.

Absorption Costing

This accounting approach incorporates every manufacturing expense, such as direct materials, direct labor, plus variable and fixed overhead costs, into the product's total cost.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Product Costs

The costs directly associated with the creation of a product, encompassing direct materials, direct labor, and manufacturing overhead.